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Apr 29, 2026
Analyzed by Llama- 4 Scout 17B 16E Instruct

Federal Reserve Keeps Interest Rates Unchanged Amid Trump's Calls for Cuts

AI Summary
The US Federal Reserve has left interest rates unchanged, defying President Donald Trump's calls for a cut. The decision was made citing elevated inflation, slow job growth, and uncertainty in the Middle East.

The Federal Reserve's Decision

The US Federal Reserve left interest rates unchanged after its latest board meeting, defying once again Donald Trump's call for a cut as the central bank prepares for a leadership shake-up next month.

Reasons Behind the Decision

Fed officials continued to cite elevated inflation, slow job growth and uncertainty in the Middle East as reasons why rates were left untouched.

  • Inflation is elevated, in part reflecting the recent increase in global energy prices.
  • Jobs gains have remained low, on average, and the unemployment rate has been little changed in recent months.

The Impact of Global Events

Brent crude oil, the global benchmark, briefly hit $119 a barrel on Wednesday, a monthly high and a 7% jump over the course of a day as uncertainty around the war in Iran looms.

Leadership Shake-up at the Fed

The Fed's meeting ended hours after the US Senate banking committee confirmed former Fed governor Kevin Warsh, clearing a procedural path for the whole Senate to confirm him as new chair of the central bank.

Warsh is expected to be more amenable to Trump's calls for a rate cut than current chair Jerome Powell, who has been the target of hostile attacks toward himself and the central bank over its rates agenda.

The Future Outlook

Questions still remain over whether Powell will stay on the Fed board after his term ends 15 May. Powell can stay on the board until his term as a Fed governor is up in 2028.

Economists largely agree that an independent central bank is essential for a stable economy.